Flipkart’s Valuation Cuts Worry Indian Startups

Some investors slashed their valuations of Flipkart by up to 23%, as concerns grow about the viability of many Indian startups amid a global slowdown. Photo: Flipkart

This transcript has been automatically generated and may not be 100% accurate.

... a shaky global economy is making investors re do the math on startup valuations ... the latest example was Paccar ... known as the Amazon in India ... a company investors believed was worth fifteen billion dollars last summer ... recently three funds that hold small stakes in folk are ... low or the valuations of the company by as much as twenty three percent ... venture capitalists either markdown signals the start of the gold rush is ending ... and it could have a domino effect on the country's other billion dollar startups ... in India Authority the unicorns ... or unlisted companies valued at more than one billion dollars ... in the U S financing for U S startups in the fourth quarter fell to a will slow in five quarters ... according to analysis by The Wall Street Journal ... at the same time in India ... investment in tech start-ups fell seventy percent ... the first decline in three years ... much of the excitement surrounding Folkard another Indian startups ... came from the expectation that India's Internet economy ... will eventually follow in the footsteps of Titans ... the problem is that while Indians are accessing the internet and a record rate only about twelve percent of the shop online ... China's largest e-commerce company Alibaba ... post billions of dollars in quarterly profit ... while Flipkart still burning through millions of dollars in cash ... according to people familiar with the issue ... analysts expect the parts valuation to fall even further ... as more funds question the company's valuation ...